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Exchange Traded Funds A low-cost option for seeking market-based returns

With an exchange traded fund (ETF), you can invest in a basket of securities that mimic the overall market or a specific segment of it. Your choice of market segment could be anything from oil to corporate bonds, or a region like Asia or South America, or simply the S&P 500.

ETFs provide:

ETFs tend to have low fees because most are passively managed. However, actively managed ETFs are also available to investors. If suitable and meets your investments objectives, you can buy and sell ETFs like stocks; they trade continuously when the markets are open. You can also track changes in the assets in most ETFs on a daily basis. And because of the way ETFs are structured, depending on your individual circumstances, your taxes on gains can be lower than on other products.

A way to diversify investments and target specific types of assets

A means to buy and sell quickly, like stocks within mutual funds

Lower tax exposure than other managed funds

Whatever your goals, know the different types of ETFs to help you get there

Some people prefer investments with opportunities for rapid growth and don't mind risk. Others prefer investments that grow more slowly, with less risk. There are several broad categories to help you think about how you can use ETFs.

  • Equity ETF

    Tracks the performance of a group of stocks, measured in a single index.

  • Bond ETF

    Provides exposure to a universe of bonds, also known as fixed-income investments.

  • Sector and industry ETF

    Provides exposure to a specific area like technology or telecommunications.

  • Smart Beta ETF

    Uses a non-traditional approach to index construction versus cap-weighted strategies.

  • Style-specific ETF

    Buys assets that follow a certain set of rules, like the fastest-growing stocks in an industry.

  • Foreign-market ETF

    Invests in non-U.S. markets, including stocks, bonds, commodities, or a mix.

  • Inverse ETF

    Focuses on markets or individual stocks or bonds that are likely to fall in price.

  • Alternative ETF

    Invests in nontraditional areas, like natural resources, real estate, hedge fund replication, and merger arbitrage.

There’s more than one way to invest in your future

COMPARE YOUR INVESTMENT OPTIONS

Your payments (premiums1)

Payout for loved ones (death benefit)

Converts to an income stream

Ability to invest in the markets

(market risk)

Principal guarantee2

Fees & expenses

Liquidity

Taxes deferred

(depending on account type)

May provide regular earnings (dividends)

ETFs

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You choose the amount

Mutual funds

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You choose the amount

Annuities

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Single premium

(variable annuities)

(fixed annuities)

529 plans

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You choose the amount

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About risk: There are risks involved with investing in any such products, including the possible loss of principal. Investors should be willing to accept a high degree of volatility and the possibility of significant losses.

1May be subject to minimums.

2Any guarantees on fixed annuities are based on the claims-paying ability of the issuer.

About risk: There are risks involved with investing in any such products, including the possible loss of principal. Investors should be willing to accept a high degree of volatility and the possibility of significant losses.

Securities are offered through NYLIFE Securities LLC (member FINRA/SIPC).